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CBA, COMMONWEALTH BANK OF AUSTRALIA
nipper
post Posted: Aug 12 2019, 09:58 AM
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In Reply To: nipper's post @ Aug 7 2019, 09:42 AM

the bear case
QUOTE
..an important corollary of this has been reduced returns on equity, at just 12.5 per cent today from a very profitable 22 per cent in 2007. It means growth now costs more capital and eats into the capacity to pay dividends.

Not that growth is an issue today. Indeed, with little growth to fund, Commonwealth Bank was actually able to increase its payout ratio – to 80 per cent on an underlying level – and thereby hold the dividend flat.

Credit growth was consistently in the double-digits in the halcyon days. CBA’s results show this is now stabilising down at around 3 per cent, mostly due to economic conditions and regulatory restrictions. Continuing pressure on net interest margins and other income is making it increasingly difficult to achieve any revenue growth at all.





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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 7 2019, 09:42 AM
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Commonwealth Bank of Australia has reported a bigger than expected decline in annual profit to $8.49 billion, as it flagged capital management initiatives were on the board’s agenda. The bank’s cash net profit fell 4.7 per cent to $8.49 billion, reflecting lower operating and net interest income, the bank said in an ASX statement.

The result was also marred by a 2.5 per cent increase in operating expenses, due to costs including higher customer remediation payments stemming from the Hayne royal commission and the addition of 600 compliance staff.

.....CBA chief executive Matt Comyn declared a final dividend of $2.31, leaving the full-year payment flat at $4.31. While not announcing any immediate new capital returns to shareholders, he said such measures were being actively reviewed by the board.

Mr Comyn also signalled that signs of life were returning the nation’s flailing housing market. “We are in a lower growth environment, but we are seeing improvement in the housing market, including improved clearance rates, stabilisation of prices in Sydney and Melbourne and slightly higher housing credit growth,” he said.

The ASX announcement said CBA’s board was considering potential capital management initiatives including an off-market share buyback. That would follow the $4 billion sale of the bank’s global asset management and the pending divestment of its life insurance arm.

CBA also told investors it was moving to close its Financial Wisdom planning business, but remained committed to an “orderly exit” of Colonial First State and mortgage broking interests Aussie Home Loans and a stake in Mortgage Choice.

The estimated pre-tax costs of closing Financial Wisdom are $26 million and CBA said it would stop providing licensee services by June 2020. The bank has already agreed to sell its other financial planning unit Count Financial.

The bank’s full-year statutory profit fell 8.1 per cent to $8.57 billion.
and, interestingly ....
QUOTE
CBA has also unveiled a big push into the global buy now pay later industry, which has potential to dramatically shake up the local market. The bank’s results announcement also revealed the bank has committed an investment of $US100 million in Swedish payments group Klarna Holding AB, as part of its $US460 million capital raising round.
The move foreshadows a move by CBA into the burgeoning buy now, pay later payments market. The move is likely to have implications for locally listed buy now pay later stocks including Afterpay Touch and Zip. “We will become Klarna’s exclusive partner in Australia and New Zealand and intend to further invest at the parent and local level to support this partnership,” CBA said.

Klarna has more than 60 million customers and 130,000 merchants and generated $US627 million in revenue in 2018....




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
nipper
post Posted: Jun 7 2019, 05:50 PM
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Closed @ $80.00

can't help thinking some buying for yield



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mrbear
post Posted: May 29 2019, 07:59 PM
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In Reply To: nipper's post @ May 29 2019, 10:27 AM

With a bit of luck they may have seen the light after the federal election that you don't mess with old folk,look after them and they will reward you,cheers mrbear

 
nipper
post Posted: May 29 2019, 10:27 AM
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Australia’s biggest bank had tried for many years via a range of means including special offers to help customers transition away from passbooks. The effort, CEO Matt Comyn reported, was largely unsuccessful, with CBA still servicing more than 400,000 of the things.

The bank commissioned some research on the matter, which came back with the overwhelming advice “do not do it”.

“I hope I die before the Commonwealth Bank takes away my passbook,” was one passionate piece of feedback. That was enough to convince the boss.
QUOTE
“When you’ve got customers preferencing death over the cessation of a product or service it feels like a pretty difficult area to go after, so I’m very confident that we will continue to offer passbooks during my tenure within the organisation,” Comyn said today.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Feb 6 2019, 11:10 AM
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CBA has delivered a cash profit for the half year of $4.68 billion, up 1.7 per cent despite higher funding costs, driven by strong home lending growth from its branches, lower operating expenses and bad debts falling.

Dividend steady at $2.00



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 


blacksheep
post Posted: Feb 3 2019, 07:49 PM
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Hayne's Report due Monday - CBA Half Year results due Wednesday. Could be a nail biting time for shorters betting on bad outcomes re both issues. https://www.shortman.com.au/stock?q=cba
https://www.morningstar.com.au/Stocks/CorpCalendar
2019 Financial Calendar - February
Half year results and interim dividend announcement date
6 Feb 2019

Ex-dividend date for interim dividend
13 Feb 2019

Record Date for interim dividend
14 Feb 2019

DRP participation deadline
15 Feb 2019
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: early birds  
 
blacksheep
post Posted: Jan 21 2019, 10:20 AM
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QUOTE
Commonwealth Bank could cut its highly-prized dividend after it spins off its wealth management and mortgage broking arms, under one scenario being discussed by analysts.

As most of the big banks retreat from the wealth sector, CBA is this year planning to de-merge the Colonial First State superannuation and financial advice business, as well as Aussie Home Loans and advice businesses Count Financial and Financial Wisdom.

The spun-out business, dubbed NewCo, would be split off from CBA late this year, and could be worth as much as $3.2 billion, Morgan Stanley analysts say.
In a note to clients, the analysts say the deal is likely to further boost CBA's capital (on top of CBA's plan to sell its funds management arm) above a "conservative" level, but also create an "earnings hole" which could lead to a re-think on CBA dividends.

They say the deal will leave CBA will "excess" capital, which could lead to share buyback or 85c a share special dividend by June this year.

But they add that CBA's board could review its dividend policy in the 2020 financial year. They put forward three scenarios: a flat CBA dividend; a flat combined CBA/NewCo dividend; or a flat CBA dividend payout ratio
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The first two scenarios would result in a "New CBA" dividend payout ratio about 80 per cent - while the third would lead to a dividend cut.

https://www.shortman.com.au/stock?q=cba
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: early birds  
 
blacksheep
post Posted: Dec 12 2018, 03:20 PM
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In Reply To: blacksheep's post @ Oct 8 2018, 03:11 PM

CBA hit with another $335m blow as fee-for-no service scandal widens and downsizing costs mount
QUOTE
The Commonwealth Bank's really bad and expensive year just got worse with another $335 million likely to be stripped from its 2019 bottom line by new costs dealing with regulatory compliance and plans to shrink its business.

Key points:
The bulk of the new costs relate to an additional $200m on top of an existing $270m provision for the the fee-for-no-service scandal
CBA also faces extra costs selling its scandal-plagued Comminsure Life business and demerging its wealth arm
The bank clawed back $135m in insurance from its disastrous $700m money-laundering fine
The new provisions are on top of the $1.1 billion of fines and "one-off" regulatory costs the CBA detailed in its 2018 full-year results.


But the market didn't seem to mind - what's another few hundred million - SP finished up 2.41% @ $70.08

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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Oct 8 2018, 03:11 PM
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Schedule
Review of the Four Major Banks (Fourth Hearings)
PUBLIC HEARING
Thursday 11 October 2018
9.15 am Commonwealth Bank of Australia
1.15 pm Westpac

Friday 12 October 2018
9.15 am Australia and New Zealand Banking Group Limited

Friday 19 October 2018
9.15 am National Australia Bank

https://www.aph.gov.au/Parliamentary_Busine...Public_Hearings




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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 


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